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How free banking stacks up

Competition is, at last, starting to have a positive effect, writes Ruth OCallaghan

LAST week, Permanent TSB bank launched a free banking service for new current account customers. But there are restrictions. Customers have to keep an average of €1,000 in their accounts every quarter before they can avail of it. If their balance falls below this, the regular charges apply. How free is free? Several banks offer special rates or no charges to customers who agree to keep a set sum in their account. We asked five banks offering current account facilities what they charged for five typical services: account maintenance, regular transactions such as withdrawals, other services such as direct debits, standing orders, statements, cheque cards and replacement cards, and charges when the account was overdrawn.

We surveyed regular current accounts from Bank of Ireland and AIB, the new loyalty account and regular current account from Permanent TSB, National Irish Bank’s Freebank and regular current account, and Ulster Bank’s U First